What Is Tax Audit?

Whenever you have completed all of your tax forms as accurately as possible, the prospect of the finding some mistake or oversight during the audit process can be terrifying.

Between the complicated tax codes and the bureaucratic structure of the audit, navigating the audit process can feel nearly impossible to the average person.You can navigate to http://www.highburytaxsolutions.com/ to know more about tax audit plans.

If you are audited, it's worth your while to consider hiring a person to help you get through the process as painlessly as possible. These professionals can not only help you understand what's going on but can also represent you to the audit if the need arises.

In the most basic terms, an audit is when the government reviews your accounts and financial information to make sure that you've reported all of the information correctly and have paid and/or reported the accurate amount of tax.

Due to the volume of taxpayers both individual and corporate in the Canada, most people do not get audited. In fact, only 2% of tax filers are selected for an audit each year. Some of these cases are selected at random.

Others are selected because something about their returns serves as a red flag to the audit. This may be anything from a large charitable donation to an unusually long list of itemized deductions to simply working in a job that tends to get significant cash payments or tips.